According to Bloomberg, two dealers who specialise in the region’s petroleum, sales of West African crude for loading next month have climbed recently. Exxon Mobil Corp. and Phillips 66, as well as Asian behemoths like China’s Unipec, have increased their procurement for the February loading, according to the people. Between three and four shipments of West African oil have already been purchased by Unipec this week alone, in addition to other supplies from the US and the Middle East.
The West African sales signal an improvement in demand for oil from the region following a sluggish start to the February trading cycle, which began in mid-December. It might also herald the beginning of a rebound in Chinese purchasing as the country abandons its venerable Covid-Zero policy.
According to the people, around four-fifths of Angola’s crude for February loading has already been sold. Three out of five shipments of Djeno crude from the Republic of the Congo, a quality that is frequently sought after by Asian consumers, have also secured their final destinations for the upcoming month.
Nigeria is reported to also be having trouble finding markets for its goods. Nearly half of the 44 scheduled shipments of Nigerian crude oil for February, or more than 20 cargoes, remain unsold. Following a spate of production issues, including oil theft and technical hiccups that reduced output from important grades like Forcados and Bonny Light, Nigeria resumed production last month. The primary market Nigeria is Europe, where imports from the US have been rising higher, and Libyan supplies are also once again available on the market.